US trade policy continues to provide a competitive moat for domestic steel producers. Section 232 tariffs at 25% on imported steel, combined with product-specific quota limitations, have constrained import volumes to 2.1 million tons in May. The quota fill rate across all product categories was 72%, down from 77% in April.
The Commerce Department’s preliminary finding that Vietnamese-origin HRC is circumventing US antidumping duties on Chinese and Korean steel has significant implications. If confirmed, retroactive duties could be applied to 500,000 tons of imports. Vietnamese HRC shipments to the US totaled 380,000 tons in Q1 2026.
Import pricing reflects the tariff-inclusive environment. HRC imported from overseas suppliers costs approximately $980/st CFR US port, including the 25% Section 232 duty. The domestic premium over import prices has widened to $198/st, up from $173/st in May.
The US International Trade Commission is also reviewing the effectiveness of the Section 232 steel tariffs. The five-year review, required by statute, could result in modifications to the tariff structure. Industry observers expect the tariffs to remain in place but with possible adjustments to quota levels.
Trade policy creates a persistent cost premium for US HRC buyers relative to global markets. The $198/st domestic premium over import prices is the effective tax US buyers pay for supply security. While sourcing domestically protects against trade policy disruptions, buyers should explore foreign-trade zone utilization and duty drawback programs to optimize landed costs where logistically feasible.